TaxTMI 
TaxTMI 
Calculation of tax
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....alculation of tax<br> Query (Issue) Started By: - Sriram Narayanan Dated:- 25-4-2008 Last Reply Date:- 28-4-2008 Service Tax<br>Got 2 Replies<br>Service Tax<br>My Comapny is registered under TNVAT Act.We are engaging contractors to do some civil/Electrical works in our Company.They are giving bills charging TNVAT,Service Tax. In some bills material portion, Labour portion is given separately.In so....
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....me bills there is no separate figures. My issue is whether TNVAT TDS is to be made only on the material portion only.whether we can apply 70/30 formula if material portion is not given separately for calculating the material portion. Presently we calculating TNVAT TDS on material portion(Excluding TNVAT) only.If no separate figure available we apply 70/30 formula for finding material value. Whethe....
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....r this procedure is correct? Reply By V Ramanujam: The Reply: Works contract is applicable where there is a composite contract involving both supply and labour. As per works contract TDS under TNVAT Act, in respect of payment on works contract, tax should be deducted on the amounts paid. There is no provision to deduct labour portion for the purpose of TDS even if given separately and should be d....
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....educted on the entire amount and further the basis of applying 70/30 ratio is also not available. Reply By V Ramanujam: The Reply: Works contract is applicable where there is a composite contract involving both supply and labour. As per works contract TDS under TNVAT Act, in respect of payment on works contract, tax should be deducted on the amounts paid. There is no provision to deduct labour por....
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....tion for the purpose of TDS even if given separately and should be deducted on the entire amount and further the basis of applying 70/30 ratio is also not available.<br> Discussion Forum - Knowledge Sharing ....